Debt is bad! It can cause all kinds of problems from the occasional anxiety to financial ruin. Yet, millions of Americans are going into more and more debt every year. Debt is sold with the myth that you can have everything you want in life and pay for it later. This is a disastrous way of thinking. Borrowing money is one of the dumbest things you can do in life and it can rob you of major wealth and happiness. Maybe you stumbled upon this post and you need to get out of debt. The good news is – it’s never too late to get out of debt. Let me show you how you can succeed in getting out of debt.
Changing the way you look at money is really a key component of getting free from the bondage of debt. It takes a major attitude change on how you view money to really change your life. I wanted the best of everything. But, not many regular people have the promise of everything they want. Instead of looking at money as an object that should be spent, it needs to be looked at as a tool to build wealth. Yes, we all need to buy things to live, but if you are paying on cars, credit cards and student loans every month, you are giving up the tool that can potentially make you a lot of money. Money that you are using to pay off loans and debt now could have been worth a fortune with the right investments.
Cut up the credit cards
It is time to cut up your credit cards. This is difficult to do because of the unknowns that can happen. How will you pay for a car repair or an unexpected emergency? The answer is to save at least $1,000 as an emergency fund before you start on your debt free journey. You should not touch this money unless you truly have an emergency. This will give you some security after cutting up the credit cards and while you are busy paying off debt. You are not going to like this. However, you must do it.
Budget, budget, budget
Do you ever wonder where all your money went at the end of the month? This is an all too common problem that can be solved by keeping a budget. Budgeting is the key to managing where your money is going to go. You must allocate every penny, every month, to be successful at killing debt. Without a budget you are just guessing. A budget is a road map that can show you where to go when you lose your mind and want to go on a shopping spree for stuff you can’t afford. A budget can be a simple list of your income and expenses. When you subtract the income from expenses it should total to zero. All of the necessities of life, your home, food, clothing, utilities and transportation, are budgeted first. Everything else goes to paying off the debt.
Grab a piece of paper and write all of your debt out. You need to put your vehicle loans, credit cards, student loans, personal loans and every other debt on this piece of paper. Now, take all of your debts and rearrange them from smallest debt to largest. Pay the minimum payments on everything except the smallest balance. For the smallest debt, you are going to pay as much as you can until it is paid off. This is exactly whey you need a budget. It will help you prioritize the things that you pay. Once your smallest debt is paid off, you will move to the next smallest and repeat until you reach the end of the list.
Cut, cut, cut
The biggest thing you can do to solve your debt problem is to cut spending. Eating out, vacation or any kind of entertainment is out of the question. This is not a suggestion, it is a requirement! They say the definition of insanity is doing the same thing over and over again and expecting different results. You must change your habits if you want to see results. I’m not going to lie – this is hard! But think of the future you could have. And by cutting spending now on things you don’t need, you’re helping yourself in the future by learning how to manage what you spend on the extras later.
Sell your stuff
You can make a large dent in your debt by selling stuff you don’t need anymore and selling big ticket items. Selling things you don’t need anymore is a simple task. In this day and age there are many ways to sell your stuff online. It may be emotionally harder to sell larger items. I’m talking about extra cars, motorcycles, vacation homes, boats, etc. Just try to remember, stuff is replaceable. However, your time is not. And that’s what we are talking about here isn’t it? You can’t get time back and the longer you are in debt, the more miserable you are going to be. If it’s really important for you to own a fancy boat, it will be important to you in the future when you can pay cash for it.
Get a second job
Maybe you don’t make enough to pay off your debt. This is a major problem! It’s simple math, you must make more money that you spend. If your current job doesn’t pay you enough money or you want to pay off debt faster, you need another job. We’re not talking forever here, but the idea is to pay off debt as fast as possible. The more money you make, the more debt you can pay off.
To get out of debt you are going to have to get laser focused. You have to want to get out of debt. By the time you get on board for a debt free life, you are going to want to pay off your debt as soon as possible. Like most, you probably have never been as focused as you are going to need to be. You need to run from debt like your life depends on it. If you don’t, you risk slipping right back in to being a slave to debt.
Get out of debt
Stop being broke! Start living a debt free life! I know for a fact that these things work to help you get out of debt. I’ve been there and it absolutely worked for me and I hope it helps you! What are you waiting for?